Four ways to save money in the new year
If one of your new year’s resolutions is to save money, you have come to the right place. We understand how hard it can be to save for a rainy day, but with these easy tips and tricks, you are sure to build a solid savings pot.
Set a monthly budget
One of the best things you can do is set a monthly budget. Your budget will be your guide to what you can and can’t do each month. For example, if you set yourself a £10 ‘takeout budget’ and you order a pizza to be delivered in the first week, you know that you shouldn’t order another takeout during the month as you have spent your allowance.
You should go through all of your expenditure and set little budgets – do this every month. If you notice that you’re blowing your budget after each payday think two things: Is your budget reasonable? (If you know you need to spend £50 commuting to work every single month, don’t set a £20 budget for that) and if you’re still overspending, it may not be your budget that is the problem.
Get a savings account
If you don’t have a savings account yet, this is essential. Try and find one with a good interest rate to give your savings a little boost. It’s also good to remember that some banks offer ‘saving pots’. Monzo, for example, is great for those wishing to save. They offer saving pots which you can name, for example, ‘Family Holiday’. You can then lock this pot until a specific date to stop you from dipping into it.
Plan holidays
If you have been saving for that special holiday, now you need to think about when to book it. If you have children then you may find yourself restricted to booking during school holidays, but if you don’t have children, then you can book any time of the year.
Avoid school holidays as these are the most expensive times to travel and instead look for low-season – take New York as an example. Thanks to the many Christmas films set there – and it also is a very popular city – visiting in December costs much more than visiting during January.
Use cashback
If you have never claimed cashback, now is the time to start. This is a way to make savings on things you buy online. Simply sign up to a cashback provider, such as Quidco or TopCashback, and browse the shops on their sites. If for example, you want to buy a new fridge, search for the shop you want to buy from on the cashback site. If it is available, click on the link which will take you to the store’s website. Here, you can buy the fridge you want and receive cashback. If the cashback was 10% and you spend £200, you get £20 put into your account.
Saving money may seem like a challenge at first, but when you see the numbers growing, you’re sure to want to continue the saving journey.